After the punishment the market suffered yesterday, buyers are in no rush this morning to snap up "bargains." There are some very minor upticks in the indices and breadth is running close to flat. If there are bargain hunters out there they seem to be looking for lower prices.
A few odds and ends look OK such as Best Buy (BBY) , Weibo (WB) and Action Alerts PLUS holding Apple (AAPL) , but the number of stocks making new 12-month highs is down to 26 and the new lows have expanded to around 50.
When there is corrective action in the market like yesterday, trading and methodology becomes most important. There aren't as many decisions to be made when the market is trending up. When stocks are pulling back then there are some harder choices about stops, buying dips and holding periods.
Aggressive traders usually welcome pullbacks because that is the best way for them to gain an edge over the buy-and-hold crowd. Traders tend to produce superior results by outperforming in poor markets. That is what hedge funds are all about.
This isn't much of a correction so far but there has been an inclination for the market to come back very quickly after a day like Tuesday. Market players are skeptical so far, but that is how V-shaped bounces always seem to develop.
While I haven't done any buying yet, I have my eye on Etsy (ETSY) , my Stock of the Week, BioTelemetry (BEAT) , which had some good news, and Tabula Rasa Healthcare (TRHC) , a recent IPO with an interesting niche.
Risk of more downside is quite high but that doesn't mean we shouldn't be prepared for some buys.